KUCHING: Malaysian football authorities must rethink club licensing practices, as financial mismanagement continues to cripple teams, threaten players’ livelihoods, and tarnish the league’s international reputation.
Sports analyst, Datuk Pekan Ramli, made the remarks in response to growing concerns about the health of the domestic football ecosystem.
Pekan warned that leniency in granting licences particularly to clubs with weak financial foundations risks further destabilising an already fragile league structure.
“There should be zero tolerance when it comes to approving licences, particularly in terms of a team’s financial stability.
“This is not merely about projected income on paper for the upcoming season, but more importantly about committed funds that the team already has in hand.
“Teams should possess at least 50 to 60 per cent of the committed funds needed for their annual operating budget before being granted a licence,” he told Sarawak Tribune when contacted recently.
He stressed that financial projections alone are not enough, and called for stricter proof of committed funds before a club is allowed to compete.
This, he said, would ensure a more stable financial footing, which could be reinforced throughout the season via sponsorships, ticket sales, merchandising, and other income sources.
Since the shift from football associations (FA) to football clubs (FC) in 2021, many teams have struggled to adapt to professional management models.
“We are seeing more teams falling into salary arrears and escalating debts. We may lose more key clubs next season,” Pekan added.
Several clubs have already exited the scene, including Perlis FC, Melaka United FC, and Kelantan FC.
Now, teams such as Perak FC, Sri Pahang FC, Kedah FC, and another Kelantan-based outfit are reportedly in financial distress, with combined debts exceeding RM15 million.
KL City FC is also caught in the same crisis.
“This situation reflects that most teams are still unprepared and lack the maturity to fully embrace professional football management,” said Pekan.
The situation has been further compounded by FIFA-imposed transfer bans, which Pekan described as a “serious black mark” on the league’s reputation.
Although some of the banned clubs are no longer active, the sanctions remain a public reminder of administrative and financial failures.
“Imagine if a sanctioned team were still active in the league – they would be severely affected.
“Not only could they not sign better foreign players, but they also wouldn’t be able to register local players from other teams.
“This would severely weaken the squad, making them non-competitive and easy targets,” he said.
To prevent future breakdowns, Pekan is calling for mandatory and regular financial audits across all Malaysian clubs, especially those competing in the top-tier Malaysian Super League.
“Periodic audits can help identify financial weaknesses and leakages, and prevent a club’s finances from spiralling out of control,” he said.
He also urged players to take action when affected by unpaid wages, especially in cases involving transfer bans.
“Players must be bold in lodging formal complaints with FIFA to fight for their rights.
“Doing so will not only protect themselves but also serve as a warning to other players to be cautious when signing with a club,” he said.
